The Challenge: The Founder’s Dilemma

Every founder eventually faces the same wall. You build a company on grit, instinct, and sheer force of will. But there comes a point where "founder-led" becomes a bottleneck.

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Ray Bailey, founder of Lone Star Communications, knows about grit. He started his career in the cockpit of an Air Force jet, chasing a childhood dream of becoming a bush pilot. But his first foray into business in 1985 ended abruptly when a bank audit turned into a lockout. They changed the locks. They shut him down.

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Ray dusted himself off and founded Lone Star in 1991. Through the lean years and the boom years, he built a powerhouse in the healthcare communications space. But as the company approached the $100M revenue mark, Ray faced a critical decision regarding his exit.

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He could sell to the highest bidder—likely a private equity firm that would strip the culture to boost the bottom line. Or, he could find a way to reward the people who had been in the trenches with him for 30 years.

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Ray didn’t just want an exit strategy. He wanted a legacy strategy.

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The Solution: Scaling Up for Succession

Transitioning from a founder-centric model to an Employee Stock Ownership Plan (ESOP) isn't paperwork. It’s a total operational overhaul. It requires shifting from a "Genius with a 1,000 Helpers" model to a team of aligned leaders executing a shared vision.

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For the last six years, Lone Star Communications has partnered with Rise Performance Group to implement the Scaling Up framework.

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To make the ESOP a reality, we had to move beyond intuition and install a system of accountability and growth.

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The Strategy:

• Strategic Alignment: We utilized the One Page Strategic Plan (OPSP) to get the leadership team on the same page. No silos. No guessing.
• Process over Personality: We documented the "Lone Star Way." We took the magic out of Ray’s head and built it into the company’s DNA.
• Leadership Development: You can’t hand over the keys if no one knows how to drive. We focused heavily on growing mid-level managers into upper management, giving Ray the confidence to step back.

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The Result: A Culture Protected, A Future Secured

The results speak for themselves. Lone Star Communications didn’t just survive the transition; they accelerated through it.

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By implementing a disciplined meeting rhythm and clear KPIs, the team proved they could drive the ship without Ray constantly at the helm. This operational maturity allowed Lone Star to successfully execute an ESOP, transferring 100% ownership to the employees.

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The Wins:

• 9-Figure Trajectory: Consistent revenue climbing toward the $100M mark.
• High Retention: Core team retained and incentivized by true ownership.
• Founder Freedom: Ray moved to Chairman with confidence in the new leadership.

Alignment isn't just about feeling good. It's about building a company valuable enough to sell, and strong enough to keep.

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"The ESOP is truly the long-term play in the company for the employees. But obviously, we need to hit certain goals... We needed to set those goals, set those procedures, and get the people in place." — Ray Bailey